There's been much speculation as to why Apple (NASDAQ: AAPL) won't support Amazon Prime Video on its Apple TV OTT devices, and why Amazon (NASDAQ: AMZN) won't, in turn, sell Apple TV through its retail engine.
Finally shedding light on this seemingly acrimonious relationship between the two tech companies, Amazon CEO Jeff Bezos said Amazon refuses to license its service for Apple TV because Apple was demanding business terms that are unacceptable to Amazon. Ditto Google (NASDAQ: GOOG) in regard to the company's Chromecast OTT dongle.
"[W]hen we sell those devices, we want our player — our Prime Video player — to be on the device, and we want it to be on the device with acceptable business terms. You can always get the player on the device. The question is, can you get it on there with acceptable business terms?" Bezos said.
For his part, Bezos denied having knowledge that Amazon doesn't sell Apple TV. He also wouldn't discuss the terms that he said were unacceptable.
Apple takes 30 percent of all sales made through apps on its platforms. That would mean that Amazon is paying commissions on all paid downloads, not to mention Prime subscriptions sold through Apple TV apps. As 9 To 5 Mac notes, Amazon notoriously operates on thin margins — a fact that might render a 30 percent commission a deal-breaker.
For more:
- read this 9 To 5 Mac story
- read this Re/Code story
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